Airbus Seeks to Oust Alenia for Afghan Transport Plane

Jan. 18 (Bloomberg) -- Airbus Military is in talks to
provide troop-transport aircraft to the Afghan National Army in
the wake of a Pentagon decision to scrap a contract to use
planes built by Finmeccanica SpA.

The discussions involve provision of CN235s and larger
C295s aircraft, Domingo Urena-Raso, the Airbus Military chief
executive officer, said in an interview. The Airbus SAS unit is
targeting 30 new orders this year, he said in Toulouse in
southern France yesterday.

The Pentagon late last year said it would not extend a
contract with Finmeccanica’s Alenia Aermacchi to provide 20 G222
cargo turbo-propeller aircraft to the Afghan forces, citing
reliability concerns. Alenia, with its C-27 that replaced the
G222, and Airbus Military dominate the market for small military
transport planes.

Airbus won 75 percent of light transport plane orders last
year, Urena-Raso said. It booked deals for 28 C295s and four
CN235s last year.

Sales of smaller planes will dominate also this year even
as the company ramps up export efforts for the A400M Atlas,
Europe’s largest airlifter, he said. The first A400M is
scheduled to go to the French Air Force in the second quarter.

“We are now in the phase when we are switching from A400M
development to production,” Urena-Raso said. Airbus expects to
hand over four A400Ms this year, three to France and one to the
Turkish air force. It plans to produce 10 aircraft next year and
21 in 2015.

French Airlifter

The first French air force aircraft is due to fly for the
first time in March. Civil certification of the type is likely
in February, Urena-Raso said. Military authorities are due to
approve the model before April, although he said that schedule
could still change by “a couple of weeks.”

With deliveries starting after years of delay, Airbus
Military will also accelerate efforts to win new customers to
help pay for a program that will lose money because of cost
overruns unless more deals are secured. Near-term prospects
exist in India, the Middle East and Asia although firm contracts
are not expected before next year, Urena-Raso said.

Sales for the European Aeronautic, Defence & Space Co. unit
this year should also include several A330-based air-to-air
refueling airplanes. India said this month it was in talks with
Airbus to buy six aircraft in a contract that could be completed
by year end.

Brazil, Singapore and others are also considering buying
airborne gas stations. Airbus and France also are in talks for
an order of A330 tankers, although the deal may not be finalized
this year, Urena-Raso said.